Bank Wire Question

SilverBaron · August 2, 2007 3:28AM

Why would a dealer NOT want accept a bank wire?
He is a U.S dealer...I am a U.S. customer...$8k...With references.

StrikeOutXXX · August 2, 2007 3:33AM

There have been a few news stories lately about bank wire fraud. Someone mentioned in a thread awhile back that they can be reversed up to 4 days after they are made.

My guess is they don't use bank wire's very frequently, and are a bit gunshy with just the small chance of fraud?

mackdriver · August 2, 2007 3:50AM

Bank wire transfers are risky due to fraud.A few years ago i sold a $2000.00 coin to someone who wanted to do the wire trasfer thing.You have to give bank info to complete it.My bank account got wiped out and it was a mess for a bit.The same fraudster that got me also tried to get a very well known coin dealer at the same time,but her bank let her know of the transaction and it was stopped before any harm could be done,my bank wasn't as good as hers.It was comitted in the Philadelphia area and the culprits where caught with numerous bogus type checks on them.I will never do another wire transfer again.

SilverBaron · August 2, 2007 4:02AM

OK... Thanks guys...In this day of electronic fraud I sure can't blame folks for being extra carefull.... It takes to long to make it just to have it wiped out in an instant!!

WTCG · August 2, 2007 4:15AM

As the others have stated, bank wire transfers are subject to fraud, and people may not be eager to give out their sensitive bank account information to people they do not know well. Transaction fees for wire transfers are fairly high as well.

mrearlygold · August 2, 2007 4:15AM

Some of the stories scare the crap out of me. Being a smaller size business owner I try to take as many precautions as possible without alienating the new customer.

Interesting that you would start a thread on this subject. I've had a wave of wire transfers in the last 4 weeks.

Keep it coming !

ilikebuffaloes · August 2, 2007 5:37AM

It is getting tough to do legit business anymore!

Wire fraud, Credit Card fraud, eBay/PayPal scams and if you try to withdrawl or deposit too much cash, you can be flagged as a possible terrorist or money launderer.

The technology to do business in this environment is great, but it has invited a lot of scammers to the table.

PrivateCoinCollector · August 2, 2007 5:46AM

I wonder if it is time to start a coin escrow service. One of the trustworthy big names sets up a service and acts as a middle man for the equivelent of a credit card fee or a flat fee. Like escrow for a home purchase. I guess it would only make sense for bigger coins, what do you guys think? Would it fly?

LALASD4 · August 2, 2007 6:20AM

I think giving out the account # of an empty account would be ok, no one can take money from a zero balance account, right?

nencoin · August 2, 2007 7:49AM

Bank wire is our most preferred method of payment in almost all cases. I hear stories about 'reversed' wire transfers, but I don't know how something like that can happen. Not a penny leaves our bank eletronically without our consent, and the consent always has to be in the form of writing AND they follow-up with a phone call to confirm. We questioned our bank in the past about these so-called reversed wire transfers, and they said that once the funds enter our account, they cannot come out without our consent - period.

I'm surprised a U.S. dealer won't accept a wire transfer. It's immediate funds, and good funds. Otherwise, he'd have to take a check and potentially wait weeks to be 100% certain it's not a bogus check. Bad funds you usually find out about quickly...fake checks can take weeks.

As far as fees, it costs us $10 to receive a domestic wire transfer...very minimal (and certainly negligible when talking about an $8,000 transaction).

DoubleEagle59 · August 2, 2007 8:09AM

If you deal with a small local bank, you should have no worries about bank wire fraud, because at these local banks only one, maybe two bank employees are in charge of the bank wire transfers.
If there is a bank wire withdrawal from your account, the bank employee should be able to notify you prior to it going through.
Also, another way to totally eliminate this from happening is setting up a second account solely for bank wire transfers. When you need to wire an amount, simply transfer the amount from your main account into this secondary 'wire' account. This way, if your personal wire info falls into the wrong hands, there will be next to nothing in this second account

DoubleEagle59 · August 2, 2007 8:11AM

I forgot to add that I too, am very surprised that a dealer would not accept a wire transfer, as this way is definitely the safest way to transfer large amounts of money, worry free.
All large corporations, large business transactions are conducted this way.

BN · August 2, 2007 8:22AM

I'd say the coin dealer should have a talk with his bank about wire accounts.

I went in to Chase, told them I'd be selling a lot of coins via mail and wanted the most secure option.

They told me to open a free checking account with the wire option, then open another free checking account to move the money into after it transfered. That way even is some one tries to pull money from your wire account they can't because it's empty.

The key is to leave the wire account empty at all time unless you actively sending or getting money. Then move it out.

BN

fishcooker · August 2, 2007 8:30AM

And make sure they don't set it up with Overdraft protection, although getting them to admit it may be tough.

Bank Wire Question

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